South African London-listed brewer SABMiller announced on Tuesday that it had closed the deal to acquire a strategic investment in Harbin Brewery Group Limited in China.
SABMiller has acquired a 29,6% stake in Harbin from China Enterprise Development Fund for HK$675-million (around US$87-million) in cash, through a new subsidiary Gardwell Limited.
SABMiller plc is the world’s second largest brewer by volume with 122 breweries in over 40 countries and some 45 000 employees
Through its joint venture partner, China Resources Breweries, it operates 30 breweries in 9 provinces in China with total volumes of over 27-million hectolitres in the year ended 31 March 2003. It entered the China market in 1994 and is one of the few profitable foreign brewers operating in China.
The Harbin Brewery Group has an installed capacity of approximately 12,5-million hectolitres and pro forma sales volumes of 10,4-million hectolitres.
The company, through the Harbin brand, is a leader in the North-Eastern China market in terms of market share and profitability.
The Chinese beer market is one of the fastest growing markets in the world. Consumption is growing at over 6% per annum and as a result the Chinese market is now believed to be the largest beer market in the world by volume. – I-Net Bridge